President Donald Trump has publicly backed cryptocurrency firms in their dispute with major U.S. banks over whether stablecoins should offer yield-like returns to users. The clash has become a major obstacle to passing the Clarity Act in Congress, a bill designed to regulate stablecoins and build on the earlier Genius Act framework.
In a social media post Tuesday, Trump criticized large banks for resisting the proposal and urged them to reach a deal with the crypto industry. He argued that Americans should be able to earn returns on digital dollar holdings and said supporting innovation is in the public interest.
Trump sides with crypto firms in trillion-dollar battle with banks over stablecoin yield https://t.co/j2wIVvgRm3
— CNBC (@CNBC) March 4, 2026
The statement boosted crypto markets, sending Coinbase shares sharply higher while major bank stocks slipped slightly.
Banks warn that allowing stablecoin yields could pull trillions of dollars out of the traditional banking system. A U.S. Treasury study cited by banking leaders suggests deposits could fall by as much as $6.6 trillion if such products become widespread.
Congress continues to debate the bill as negotiations between banks and crypto companies remain stalled.
Also Read:
TIPP Staff
